Workers' Compensation by state
Workers' compensation requirements in Alabama
Required
Direct answer
Does Alabama require workers' compensation insurance?
Yes. Alabama requires workers' compensation coverage once a business has five or more employees, under the Alabama Workers' Compensation Act. Alabama requires workers' compensation coverage once a business regularly employs five or more employees, counting full-time and part-time workers. Employers below the five-employee line may still elect coverage voluntarily, and many do because an uncovered workplace injury exposes the business to direct liability.
How the mandate works
Alabama requires workers' compensation coverage once a business regularly employs five or more employees, counting full-time and part-time workers. Employers below the five-employee line may still elect coverage voluntarily, and many do because an uncovered workplace injury exposes the business to direct liability.
- Coverage trigger
- Five or more employees
- If you go without coverage
- An employer that fails to carry required coverage loses key common-law defenses and can face civil penalties and double compensation liability for injuries.
Notable exemptions
Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.
- Employers with fewer than five employees
- Domestic servants and farm laborers
- Casual employees not in the usual course of the employer's business
- Corporate officers may elect to exempt themselves from coverage
Statutes and sources
-
Alabama Workers' Compensation Act
Ala. Code sect. 25-5-1 et seq.
Regulator: Alabama Department of Labor, Workers' Compensation Division . Last verified 2026-07-29 from the official source .
Related Alabama compliance pages
Workers' Compensation in other states
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Get Alabama coverage handled
Share a few details and an agent will respond within one business day.